In this guide, we’ll break down everything you need to know to report your Rarible taxes. We’ll break down the basics of NFT taxes and share a simple 3-step process to help you report your Rarible transactions on your tax return in minutes.
Rarible is a NFT marketplace that allows investors to buy, sell, and trade NFTs. Rarible is famous for taking steps to become fully decentralized. The platform’s RARI token allows users to vote on governance decisions and invest in the future success of Rarible.
To accurately report your Rarible taxes, you’ll need a complete record of your NFT and crypto transactions. This should include the following information.
You may have trouble calculating your NFT taxes if you haven’t kept careful records of your transactions. Luckily, NFT tax software like CoinLedger can help you report your taxes in minutes.
With CoinLedger, you can report your NFT taxes in three easy steps.
1. Within the CoinLedger platform, select ‘Import’ and select the option ‘Ethereum Wallet’.
2. Copy and paste the wallet address you used to conduct your Rarible transactions.
3. CoinLedger will automatically pull your transactions from the blockchain — including the crypto and NFT transactions you conducted on Rarible.
And that’s it! Once you’re done, you can add your other wallets and exchanges and generate a comprehensive crypto & NFT tax report with the click of a button!
NFTs on Rarible and other platforms are subject to capital gains and income tax.
When you buy an NFT with cryptocurrency, you’ll incur a capital gain or loss depending on how the price of your crypto has changed since you originally received it.
When you sell an NFT, you’ll incur a capital gain or loss depending on how the price of your NFT has changed since you originally received it.
If you’re a creator receiving income from NFTs you’ve created, your income from your NFT sales will be subject to income tax.
For more detail on the tax implications of NFTs, review our complete NFT Tax Guide.
At this time, NFT marketplaces like Rarible don’t report to the IRS.
However, it’s important to remember that NFT transactions on blockchains like Ethereum are publicly visible and permanent. In the past, the IRS has worked with contractors to analyze the blockchain and crack down on tax fraud.
At this time, Rarible doesn’t send tax forms to users. It’s your responsibility to keep track of your capital gains and income for tax purposes.